♪ matt: from bloomberg's world headquarters in new york, good afternoon. covering stories from mexico to washington and vienna. matt: president obama is hosting the mexican president today. one of donald trump's fiercest global critics. they hold talks today after trump accepted the republican presidential nomination. their remarks, just moments away. shery: emerging market currencies, nigeria weakening for the first time as africa's largest economy struggles with a scarcity of foreign exchange. matt: matthew horne bok of morgan stanley called the treasury rally, but now he's revising his forecast and is more a wish than just about anyone else on the street --

more bullish than anyone else on the street. to the markets desk right now, where julie hyman has the latest. jules? earlier we were sort of drifting, unchanged, but now things have turned higher across the board. reclaim theo records that we saw back on wednesday, but nonetheless still the s&p is up one third of 1%. let's take a look at the week as well to get some perspective on the record that we saw on wednesday. you can see it pretty clearly here, the record levels where we were on the intraday closing basis. even those climbing back, still not at those levels. back to today's session, a lot of push and pull going on. companies like general electric, falling even after earnings beat estimates because orders fell in the second quarter. apple under pressure has one of

its egg suppliers, skyward issuing a warning related to its biggest customer. paypal, holdings falling even -- earningstes beat beat estimates as well. back to you guys, i believe we are going to hear from the president. we are watching the cloud -- crowd. let's listen, live. president obama: we worked together last month. today we are two of the three amigos. the handshake will be easier when it's just two people. [laughter] let me start by saying that is too often overlooked that bears repeating, especially given some of the heated rhetoric that we sometimes hear. the united states values tremendously our enduring partnership with mexico and our

extraordinary ties, the family and friendship we share with the mexican people. and i go is our third largest trading partner. we sell more to mexico than we do to china, india, and russia combined. every year, millions of tourists, built -- business people, friends and family across our border illegally. $1.5 billion in trade and investment losses are border. that is trade that supports over one million jobs right here in the united states. on a whole host of issues. from our shared security, to climate change, mexico is a critical partner. and is critically important to our own well-being. we are not just strategic and economic partners, we are also neighbors. we are friends. we are family.

including millions of americans connected to mexico by the ties of culture and language. that is why as president i have worked to deepen the partnership tween our two nations. and i haveque discussed ways to increase the strength between the us-mexico partnership. first, high and economic dialogue. we will keep working to boost trade and grow our economies and create more opportunities for our people. today's air transport agreement, we are expanding the number of airports the businesses and consumers can fly from, making travel and trade more affordable and efficient. we are working hard to bring into effect the transpacific partnership so that our workers can compete on a level playing asia-pacificthe region and open up doors to new markets. i have reiterated to the i amdent that though

disappointed in the supreme court's failure to come to a immigrationour executive action, it is my firm believe that it will be in the ,nterest of the united states especially our economic interests, to pursue comprehensive immigration reform. second, we are deepening our robust partnership on energy and environmental issues. both of our nations are committed to ensuring that the historic agreements are fully implemented. we are going to keep on working ports the goal that we announced last month and auto walk, generating half of the electricity in north america through clean power by 2025. goal in mind, we are looking at sharing civilian nuclear technologies. this fall our new us-mexico energy business council will meet for the first time to strengthen the ties between our energy industries. want to thank i you for your vision and leadership in reforming the

mexican energy industry. i am also pleased that our nations will continue to work to protect our shared ecosystems and environmental heritage. third, we will continue to protect the health and safety of our people. especially from an opioid epidemic that is taking so many lives and devastating so many communities. both of our nations we agree share a responsibility to combat this crisis. in the united states we are working to improve treatment, prevention, and reduce the availability of illicit drugs. to curbd the plans heroin production and fight crime. we continue to implement 21st-century technologies to ensure our border. as mexico makes important reforms to its judicial system, we are working together to strengthen law enforcement and to strengthen observance of human rights and the rule of law.

we are stepping up efforts to tackle regional and global challenges. from confronting cyber threats to fighting diseases. we will keep partnering with central american countries. i'm grateful that mexico is taking this importance that on refugee issues and will be cohosting our refugee summit at the united nations this september. finally, we continue to strengthen the strong ties between our people. we want more american students studying in mexico, we want more mexican students studying in the united states. today we agreed to extend and update our educational cooperation. through efforts like the 100,000 strong we are expanding opportunities for educational

exchanges and scientific hardships as well as research collaborations. we're working to help girls learn around the world and especially through mexico's commitment to strengthen america andlatin the caribbean. in closing, since his is likely to be our final white house meeting, i'm reminded by what he said when he came here four years ago. he said that our nations had a to sharepportunity motherhood, sisterhood, collaboration, and accomplishments. i am proud of what we achieved .ogether i am confident that our nations will continue to grow even stronger and more prosperous together in the future. thank you very much. [speaking pena nieto:

spanish] 'sesident pena nieto: translator: thank you for having us to the white house, perhaps ministration,ur president obama. i would like to say how important this friendship is. the friendship we have always had towards president obama. he has been a very good neighbor. through stability and harmony in our hemisphere, with the solution of global challenges, for instance the climate change, international migration, and the reduction of nuclear weapons. i would also like to recognize in his administration the size of the support to migrants,

including the over 35 million people of mexican origin who live in the united states who of part of the generation wealth and employment in this country. i would also like to take advantage of expressing our condolences, of the mexican people, my personal condolences for the lamentable events in texas and louisiana. i fully recognize and acknowledge in president obama a leader committed in our bilateral relationship. which i should say, today, is going through one of the best moments in the relationship of the history between our two countries. visit we have agreed to work on an agenda. agenda-thematic

celebrating competitiveness. the meeting during this morning on the importance of institutionalizing accomplishments so that they will be lasting throughout time. with a bilateral forum on higher education this year, over 64,000 mexicans as will be carrying out academic activities here in the united dates. and on the other hand, the high level economic dialogue the participation of officials who support the administration at the highest ranking level, it's undoubtedly become a platform for competitiveness. ladies and gentlemen of this meeting, we have agreed to give thatpermanent character so the benefits that derive from the dialogue will be expanded throughout time. we now have a joint cargo inspection program to reduce the cost of up to 50%, that is half

the cost of the waiting times that have also been reduced by 60%. we have also implemented this project, this program at the laredo texas airport. at the baja border crossing. soon this will also be operating in warez. with projects such as this, we are building a safer, more modern -- modern and agile border. a border that intelligently generates prosperity for both countries. under this framework of competitiveness, we are now celebrating, going into the favoring agreement connectivity between countries. as of the moment that this

agreement goes into effect, we will have more flights, more flights that will be better connecting mexico and the united states. today we have also formalized the energy business council to support the mexican transition towards an open and competitive market. said that issues related to security and migration should be an empirical, comprehensive perspective under the principles of shared responsibility. fact that the consumption and trafficking is a priority, we should find solutions to this challenge. we have created a high-level task or some drugs that focuses on heroin. we have also decided to increase our operations with the governments of south america so that we can look into migration issues. especially the protection of

children traveling unaccompanied . finally, let me refer to the electoral process taking place here in the united states. let me say that the closeness between the united states and mexico is more than just a relationship between two governments. it is a solid, sound, unbreakable relationship among millions of people who live in both nations. for mexicans, for americans we are united by 3000 kilometers along the border of neighboring with a population of over 50 million inhabitants. their well-being depends on the well-being of their neighbors. people, for the mexican government, a very good relationship with the united states of america is of course essential. and from now on right here let

me explain my absolute will of collaboration to whomever is elected in november as the leader of this great nation. or president of the united states will find in mexico and its government a constructive attitude with proposals and good faith to strengthen the relationship between our two nations. i'm certain, ladies and gentlemen, that the political process in the following months will be characterized by the intensity of the debate and the contrast of ideas and the vitality of the citizens participation according to the great democratic transition that characterizes the united states. the mexican government will be .bserving with great interest but it will not do its opinion

or get involved in said process. full and exclusive correspondence to the people of the united states. hillary clinton mr. donald trump, i wouldn't -- i would both of themss to my greatest and deepest respect and i propose going into a frank and open dialogue with whomever is elected. i am sure that it will be possible to take a step ahead so that we can face common challenges and take advantage of our enormous opportunities that , and findor's solutions, solutions for possible differences that undoubtedly for mexico, it is very important for the united states to do well and for the united states to have a strong

economy and for the united states is also very convenient for the mexican economy to also do well. your next madam president, or president, will find in mexico a to face thertner economic security issues that we share and all the challenges that we share. i would like to reiterate, president barack obama, my appreciation for your hospitality for this fraternal meeting and for everything regarding the route and the promise that we can continue to working together as sister nations and neighbors. i reiterate my broadest recognition, president obama, for being an invariably great friend of mexico. thank you very much. for aent obama: got time few questions, starting with kevin court.

kevin: thank you, mr. president. wondering if you had a chance to take in the rnc last night get your reaction to the comments made by the republican presidential nominee. specifically, how do you counterbalance, looking ahead to philadelphia, what was clearly an appealing message to many working class americans? he said once again there is a need for a wall. you and i know that the united states spends tens of millions of dollars on a barrier between our countries already. i'm wondering, where does mr. trump have it wrong as far as the need for a wall? you may know that your approval ratings are historically high, congrats on that, yet you're right track wrong track, two thirds of america say we are on the run track. -- wrong track. is it fair to say that that's an indictment of your presidency? and mr. president, thank you for

coming. two simple questions, one, you kind of touched on this. donald trump could very well be the president in january. how do you work in partner with a person you have previously compared to himmler and mussolini? specifically on anti-narcotic ,nterdiction along the border are you satisfied with the job you have done as president? and what should mexico be doing more of to help stem the tide? thank you, gentlemen. president obama: president obama: -- president obama: ok. well, first of all, i want to congratulate city of cleveland, the secret service, the law that managed a big influx of people. the occasional protester, just a lot of activity.

they made sure that everybody was looked after and safe. i think they did a great job. second, the republicans had an opportunity this week to share their vision with the country. and emphasize the issues that they thought were important. i'm going to let the american people judge how persuasive their arguments were. week, the democrats will have an opportunity to present their vision. both the progress we have made and how we make sure that everybody gets opportunity and security in the future. a little bit of editorializing there, kevin, when you said -- how do i counter a message that was clearly appealing to working class americans. i don't know if you have talked to all of them. >> [inaudible]

it's not obama: so, really clear how appealing it was. we will find out. that's what elections are for. i did not watch the convention. i don't think that's a surprise, i've got a lot of stuff to do. they are pretty long events. but i did read some of what was said. the one thing that i think is is thist to recognize is somehow onica the verge of collapse. this division of violence and chaos everywhere. vision of violence and chaos everywhere. it doesn't really jibe with most people.

i would hope that most people walked outside the next morning and the birds were chirping, the sun was out. this afternoon people will be watching their kids play on sports teams, go to the swimming pool. folks are going to work, getting ready for the weekend. and in particular a think it is important, just to be absolutely of theere, that's some fears that were expressed throughout the week just don't jibe with the fact. let's take two specific examples. , theit comes to crime violent crime rate in america has been lowered during my presidency. time inn lower than any the last three to four decades. and although it is true that we

in murdersn uptick and violent crime in some cities this year, the fact of the matter is that the murder rate ,oday, the violence rate today is far lower than it was when ronald reagan was resident. and lower than when i took office. we have just gone through a saw bothriod where we a tragedy and minnesota in baton minnesota and in baton rouge and then the insanity and viciousness of people targeting police officer. -- officers. we are all troubled by that. disheartened. how can we rebuild trust? support law enforcement? make sure that these communities

feel they are being fairly policed? the fact is, the rate of intentional killings of police is also significantly lower than it was when ronald reagan was president. those are facts. that's the data. , in it comes to immigration think americans expect that our immigration process is orderly and legal. and we have put unprecedented resources on our border. it turns out that the rate of illegal migration into the is lower bys today two thirds than it was when ronald reagan was president. we have far fewer undocumented workers crossing the border 1980 oran we did in the

the 1990's, or when george bush was president. that's a fact. so, the one thing that i think is important is obviously there are going to be different visions about where we should be going as a country. how we can provide jobs, make sure that our kids can get the education they need to succeed in the 21st century. how do we deal with our budget? how do we make sure our tax estimates fair? the very real issues around growing inequality or wages that have not gone up as fast as you want them to in the real pressures a lot of families feel. but we are not going to make fearsecisions based on

that don't have a basis in fact. that is something that i hope all americans pay attention to. america is much less violent than it was 20, 30 years ago. less aigration is much that it was not just 20, 30 years ago, but when i came in as president. that doesn't mean we haven't solved those problems, but those are facts. and you had some question about my approval ratings in high and right track wrong track? think that if you look at almost every year under every , i don't over the last know, 20, 30 years? you are going to be hard-pressed to find the year in which the

majority of americans thought we were on the right track. the goodause all things are happening in america don't get reported a lot. so i don't think that's actually unusual. appreciate you bringing up the fact that my poll numbers are doing ok. [laughter] president pena nieto: [speaking spanish] president pena nieto's narrator: thank you very much, president obama. let me reiterate what i said a few moments ago. relationship goes deeper than business. to people who have a common life , or millions of people who have their everyday lives in both nations. undoubtedlyip that involves millions of inhabitants of both countries.

i would also like to say, if i the said this before, mexican administration, the democratic process, you live here in the american union and for this process we will always be absolutely respectful. we will not get involved. we will not give our opinion. set any type of position because at the end of the day this corresponds to the people of the united states and it is the american people who have to decide who the male or female president will be. what we can say right now is that whoever is elected here as president to the mexican government will be working in a constructive matter with good faith. i am certain that the relationship between both countries will go beyond the mere economic environment. here president obama has highlighted many of the such

religion -- relevant figures that show the vitality of the relationship between our nations. the millions of jobs that are generated in the united dates, mexico, and exactly the economic relationship. but there are some very other important aspects i should highlight. the good cooperation that we have in terms of security. not only for the mexican combat organized crime in a more efficient manner, but also for the u.s. government to efficiently fight criminal groups that are practically not respecting any type of border and are cooperating in both nations. that cooperation in terms of security between mexico and the united states is also ever present in the fight against present -- terrorism. we are working so that we can turn north america into a

terrorism free nation. this is something that we share everyday, this everyday cooperation. we share information. we do activities together. we are always trying to keep north america as a region free of the presence of terrorism. that is why the attitude and provisions of my administration in terms of committing ourselves to continue working with whomever is elected as president of the united states is the decision that we are going to respect, the decision of the american people. let me also say that never before have i said anything or two anyven any ajit to other candidates in the election

in the united states, nothing i have said -- if anything i have said has been taken out of context as we gather everything we have set on this process, if you see everything i have said, invariably, i have it respect -- i have expressed absolute respect. this is a nation in the decision -- is the decision of the people of united states. yes? good afternoon, mr. president. theysides have expressed are in favor of the free market and globalization. we have heard some voices that oppose these paradigms. my question is, do the legal

does not put nafta aside by degree and president obama, i would like to ask you what kind of issues you have in your administration that you would have liked to complete, thank you. modelhink the free market of commercial trade openness, this model has undoubtedly shown enormous benefits for nations for those of us that follow this model. let me just say that as of the agreement signed with united states and canada and talking about nafta, the trade level 547% in the last 20 years of nafta. ins undoubtedly is reflected more productive investments and the creation of jobs as well. and it has promoted different projects for the development of infrastructure to make our

countries even more competitive. i also think that what is happening is that whenever we have had slow down in the world economy, we start questioning the model. this is something i am fully convinced of. mexicot that this model has followed and promoted and had a particularly important strategic heart and ship with the u.s. and canada. this is a model that still promises a lot of things so much for the benefits of our citizens. it allows us to consolidate the north american region as a more competitive region with a lot more investment. we are taking advantage of opportunities to build the labor possibilities for our people's. this is really something we have to highlight and underline.

this agreement is projecting into the future. now, we can say it is something we have had for 20 years. i think there are also conditions to modernize and update this and to find more advantages so that it will potentiate a shared, common threeility that the strategic partners have. i'm talking about canada, the united states and mexico. willieve this agreement which isn through tpp about to be approved in different countries and undoubtedly they potential lies the boost and they create a highly promising platform for economic development and for the

benefit this will constitute for our societies. i think the mechanism is already the position of the united states. after 20 years of having nafta, we now have eventually the conditions to modernize it an update it, nafta, and potential eyes this agreement even more. enrique that one of the values of the transpacific partnership is that from errorrned experience in nafta, what has worked and what hasn't and where we can strengthen it. a number of the provisions inside the transpacific partnership address previous and wills of nafta

make what is already an extraordinarily strong economic relationship between our two countries even stronger. and it will make sure that the integration isal serving not just large companies but is helping small companies and small businesses and workers. so, what i have said consistently is that globalization is a fact because of technology, because of an integrated global supply chain, because of changes in transportation. are not going to be able to build a wall around that. what we can do is to shape how that process of global integration proceeds so that in

it increases opportunity for ordinary people so it's creating better jobs so that we are strengthening protections for workers and so that we are addressing some of the environmental challenges that come with rapid growth. forward and find shape this newe of the global economy in a way that benefits everybody, rather than to look backwards and thank we can undo what has taken place, i think is our best strategy. and for all the talk about orrting trade wars

increasing protectionist barriers between countries, when you actually examine how our , auto plants in the united states, for example, would have a hard time producing the number of automobiles they produce and they have had record years over the last several years if they are not getting some supplies from companies in mexico and companies in mexico will not do well if they don't have some connection to not just markets but also suppliers and technology from the united states. how weave to focus on ensure the economy works for everybody and not just a few. there are dangers that increasedion of inequality in danger because capital is mobile and workers are not if we don't provide them sufficient protections, that they can be left behind in this process.

that is what we have to focus on. the transpacific partnership is consistent with that. president obama, given the fact that the government of turkey is asking for the extradition of a turkish cleric, how are you weighing that decision and how to you view allegations that he helped foment the recent coup and that turkish intelligence officials have said they believe u.s. intelligence services had direct knowledge of the coup's planning. ofh the firing of thousands search and the imprisonment of thousands of turks and the banning of overseas travel there, at what point do you need to speak out more for -- more forcefully about these tactics? undergraduate thesis on the legacy of the revolution and how that shaped their nations politics.

you is that you mentioned your efforts to address heroin and the trafficking and transferred to the united states. can you talk more about the challenges you face in disrupting this illegal trade, particularly given the fact that often it is transported in small amounts making the large busts more difficult? presidentn, you, like obama, have made climate change a top priority. can you talk about the biggest obstacle you face there and how climate impacts are affecting her country and future relationships between the u.s. and mexico in terms of migration and other factors? chancet of all, i had a to talk to president erdowan this weekend read awaited -- and reiterated what we said from the earliest reports that a true was

being dead letter coup was being attentive in turkey and that was that we strongly reject any attempt to overthrow democracy support thehat we democratically elected government there, and i think one of the signs of great strength in the turkish people was the fact that even stronger n,ponents of president erdowa when reports of the coup was taking place and it was still uncertain, who was behind it. even opponents of the president pushed back hard against the idea that the military should overthrow a democratically elected government. reports that we had any previous knowledge of a coup attempt, that there was any u.s.

involvement in it, that we were anything other than entirely supportive of turkish democracy are completely false. unequivocally false. i have said that to president thatan and i said to him that notto make sure just he but everyone in his government, understands that those reports are completely false. because when rumors like that start swirling around, that puts our people at risk on the ground in turkey. and it threatens what is a critical alliance and partnership between the united states and turkey. clear andbe as unequivocal as i can be. deplore the attempted coup. we said so earlier than just

about anybody and have been consistent throughout that the turkish people deserve a government that was democratically elected. now, what is true is that turkeynt erdowan and have a strong belief that mr. who was in pennsylvania, a legal resident of the united states, is somehow behind some of these efforts. what i said to president erdowan is the same thing i would say to you and anybody else who asks which is that we have a process in the united states for dealing requests madeon by foreign governments and it is governed by treaties and and it is not a decision i make but rather a

decision that our justice department and investigators and myrts make alongside administration and a very well and well established process. erdowanld president that they should present us with evidence that they think indicates the involvement of mr. anyone else in the united states and it would be processed the way it is always processed and that we would certainly take any allegations like this seriously but america is governed by rules of law. those are not ones that the president of the united states or anybody else can just set aside for the sake of expediency

even when we are deeply supportive of turkish democracy and even when we care deeply about any attempt to overthrow their government or any other illegal actions. we've got to go through a legal process. respect to what is happening in the aftermath of the coup attempt, in my conversations with president erdowan, in statements by john kerry and others, what we have indicated is our strong belief that, as the dust antles, there is not overreaction that could, in some fashion, lead to a curtailment of civil liberties or a

weakening of the ability of fortimate opposition journalists through legal processes to voice their concerns and petition their government. as ahat the united states friend and partner of turkey and me personally as someone who has worked with president erdowan for a long time now, would encourage that the manner in investigatedup is and people are held accountable and justice is done is law andnt with rule of the basic freedoms that i think the turkish people have fought for and defended. discount, we cannot

justcary and shaken, not the turkish government is, but turkish society is. group off you had some military officials in the united states that started lying off with f-16s or other artillery and were taking shots at government buildings and people were killed and injured. people would be scared. and rightfully so. one of the challenges of a democratic government is making sure that even in the midst of , wegencies and passions and sure that rule of law the basic precepts of justice and liberty prevail.

whatpe is that that is will emerge. in the meantime, we will continue to work with turkey even as they try to stabilize the situation. our base where we are going runningl hard is up and again and we continue to work with them to make sure that we don't lose momentum that we have built in terms of weakening 's position in syria and try to strengthen the prospects for some resolution of that terrible conflict. thank you very much for your question because it allows us to show and talk about a subject matter we have agreed and something i mentioned in my first presentation which is

exactly related to the creation. as a matter of fact, since we met in canada, it created a high level group to define mechanisms to combat the production of opium poppy production and opium gum and heroin coming into the united states which is the situation clearly today. what is reality all about? we see there is a growing production in some parts of the geography of mexico where there are conditions for the production of this crop. and there's also a growing introduction of heroin here in the united states. this is the information we have right now. that is why we have to get together to be able to continue to working together to find a solution to eradicate crops and

crops, alternative conversion of crops and create mechanisms that will allow us to face up to this which has taken the lives of hundreds of people especially here in the united states. what we have agreed on is to work together and to define the route we will be following. this -- theseid poppy crops from extending to other parts of the mexican geography whenever that is possible and be able to diminish andavoid this growing trends of heroin in the united states. i think this topic shows something else. need boths the countries have two face up to problems.

poppy in mexico which is the base for heroin production and is taking place in places where there is violence of the production of these crops. and of criminal groups as well who become stronger through the introduction of illegal weapons, guns in our country, firearms coming from the united states into mexico. this isately, increasingly encouraging the opium poppy cultivation in mexico. commont, this is a problem because it generates a problem of violence in our country and a strengthening of criminal groups in our country as well. her win thetion of united states has taken the lives of thousands of people in this country. is one of thesaid

are subject matter's that on the shared agenda between our two countries, the need of having and attending to this and a joint fashion. this issue shows the need to work in a very close manner in a constructive manner, in a positive way to look into this jointly, our two governments to look into problems faith thing -- facing both societies and this is what we have decided to do. i want to thank president barack obama for his political will so we can create this high-level working group, this task force to find a solution for this phenomenon. >> good afternoon.

he spoke about the need to institutionalize the agreements reached buspar between both nations. besides the free trade agreement , taking into account the change in administration and the united states, i would like to ask whether you have discussed the extraditions as well. when we see about institutionalizing mechanisms between both countries, it is for them to be durable through out time. there are three particularly important mechanisms that are now allowing us to have a very positive constructive relationship in both nations. first, the high-level economic dialogue that involves the highest-ranking officials in both administrations working in favor of creating a path for infrastructure construction, border infrastructure which is

more modern where we are allowed to have more agile trading commerce between our two nations. security, something , a securitydy said consideration allows us to fight together jointly against criminal organizations operating in both countries and operating a safe order. it comes from this high-level dialogue that we had. and surely academic exchanges to have more students from mexico to come to the united states to get their training and education in north american students to be able to go to mexico. this has been a growing if iteris is a number -- growing impetus. was 15,000 mexican students

coming here to study in the united states. we have decided to continue on this path and continue promoting it. the third thing is the mechanism to implement innovation, technology, and infrastructure in north america. this is a mechanism that allows us to identify areas of enhance value chains, productive chains and also supply chains that are there for the production in the united states as well as in mexico. we have already defined a cluster or mapping process to promote the economic activity in both nations and how we can strengthen this relationship. this is another mechanism generated as of the commitment and will of the president obama administration so it it's a good relationship. it's not a mono thematic relationship just focusing on security.

we wanted to really launch efforts in both governments to promote competitiveness and productivity of the united states, of mexico and north america and really promote and foster this region so it can become the most attractive region for investment, economic growth, and productivity and development. for that, we have to work on common fronts especially in joint projects that will allow us to really comply with this purpose. >> i thought that was a good summary of what we mean when we say the need to institutionalize the relationship -- it is important to remember that so much of the work that kids done between countries is not done at the level of presidents. it is done within various

agencies whether it's law enforcement or economic ministries. when they establish relationships and systems of communications and shared projects and shared visions, those structures continue even after any particular president is gone. it builds trust and understanding between countries that are critically important. this gives me a good opportunity that throughout my presidency, both with president to and his predecessor, we have had consistent, strong collaboration,

where there have been differences or tensions, we have consistently tried to work through them in a constructive and positive way. to take an example of something that always gets a lot of attention, the issue of the a lot of the undocumented workers or migration flows that we have seen over the last several years are not coming from mexico but from central america. the hard work for of mexico in trying to secure its border to the south and cooperate with us, we would have a much more significant problem. that is not always easy. and requires resources policy decisions made by the

mexican government. but the cooperation on that front has been absolutely critical in making sure that we deal with these issues in a serious way and a humane way. we continue to make progress on that front. the same is true when it comes to drug trafficking. this is a problem of both of our countries. as a consequence of the work we seendone together, we have progress in some areas both in the flow of drugs north also in illicit of guns and financing south. we're not going to be able to solve this problem by ourselves. mexico will need the united states to cooperate in order to rid itself of the violence and corruption that results from the drug trade.

build thesecan cooperationits of and in grain and in our various agencies, the better off we will be. i want everybody to be very clear -- mexico has been a consistent, strong partner with us on these issues. if they had not been, we would have had much bigger problems on our borders and the benefit of a cooperative mexico -- by the way, a mexico that has a healthy economy, a mexico that can help was billed stability and security in central america -- that will do a lot more to solve any migration crisis or drug trafficking problem than a wall.

it will be much more reflective of the kind of relationship we would -- we should have with their neighbors. thank you. >> the president of the united states, president barack obama with the president of mexico at the white house. the president says he is proud of what the united states and mexico have achieved together. to said we are building a safe and natural border and he said there is and him break double relationship between the peoples of both nations. he added that the well-being of those people depends on the well-being of those nations. he said the next president of the u.s., whomever that might be, will find a constructive attitude with good proposals. is standing by in

washington with more. president obama and president nieto have had a good relationship but there is the undercurrent of what we witnessed this week, there are public and national convention. how do you feel both gentlemen handled that? donald trump's official ascension as the nominee seems to change the way the mexican president feels how he can talk about his feelings. it's no great mystery. he has in the past raised the figures like mussolini and hitler in talking about how he views donald trump and talking about isolationism and his concern. once that's out there, there is no need to keep talking about it. he is trying to be more diplomatic and talk about deep respect but the timing of his visit -- president obama just saw the mexican president a couple of weeks ago in canada and will see each other again in the fall.

there are months in between when the timing of the visit could have been arranged. it was announced a week ago before the start of the convention. the timing allowed president obama and the mexican leader to draw attention to the bonds between the countries on some of the economic ties between the countries. president obama talked about 1.5 billion dollars of trade every day and one million american jobs. this has been worked out in advance even if they are not bashing donald trump directly, they want to make the point -- you heard that the mexican leader talked about 35 million americans of mexican heritage, subtext voters. economyu talk about the and president obama and president nieto spoke about nafta. said thedent of mexico openness has shown tremendous benefits and president obama said one of the values of the tpp is that we have learned from

nafta, what works and what doesn't and what needs to be changed. onen that this has become of the rallying points on the republican side t that thepp needs to be scuttled and may perhaps need to start over, were both presidents staking out their positions here that nafta tpp are deals that can go hand-in-hand and provide benefits to both countries? president obama has made his position clear even though it runs in conflict with what many in the democratic base want. it's a position that hillary clinton has been prodded into taking. you see some mixed messaging heading into the democratic national convention. there is the idea that republicans had rejected the idea of free trade. donald trump has and you heard in his convention's bees --

speech and talking about this, it was interesting to see which republican convention goers were nodding in agreement and which were standing there. president obama touched on the subject in a slightly different way when he took a question about working-class voters in the notion that donald trump had the entire working class's own up. -- sewn up. president obama says he does not recognizedoes not that premise so we will see careful messaging heading into the democratic convention but president obama's magnet clear he will not abandon his pursuit f the tpp even if it is inconvenient for the democratic race. i have a question about the vice president, what are you hearing? no reason to believe it's not tim kaine but we have no confirmation.

we expect a notice to go out to her supporters by text first, probably in the coming hours and then we expect an appearance tomorrow. mark: tim kaine is fluent in spanish, we should point out. thank you for joining us from washington. matt: thanks so much. let's give you some breaking news on loreal which is buying a competitor, it cosmetics for $1.2 billion. loreal is a $110 billion company with almost $30 billion in revenues. it will add this cosmetic maker for $1.2 billion. shery: let's look at emerging markets and their currencies. thank you so much for patiently waiting for the news conference

to be done. we just heard from both residents -- remember what happened when we had the brexit vote and we saw the mexican peso being knocked down. how much of a risk is u.s. politics to the mexican currency? >> mexico unfortunately is subject to quite a few weights. ater the brexit vote, it's freely traded currency so many use it as a proxy, short against the yen. despite solid fundamentals, the mexican peso has underperformed during stress. that's the global backdrop. domestically, i think people are fixated on the u.s.-mexico relations with the risk of donald trump. i don't want to overplay it now. we cannot talk about the elections until we get to september and the polls take shape. it's still too early.

trump may get a bump from his convention so we will have to see. the peso is in the crosshairs. i remember using this chart from the brexit vote. it shows you the 30 day correlation of the peso and the pound. it's interesting how strongly correlated they are not just after the vote but they have been pretty strongly correlated at the beginning of the year. why are the two so closely correlated? >> it goes to the risk on/risk off. we haven't buffeted by headlines and brexit and global growth. it's not just against the peso, a lot of emerging-market currencies are highly correlated. the rates market, the equity markets, everything.

i am looking to go back to the old fashion way when we trade on fundamentals. matt: does that make your job more difficult? >> yes, it does. there is something fascinating every day that happens around the world. it is hard to make recommendations for clients and investors. one of those things that is worrying is the situation in turkey. we have seen their second day under a state of emergency. what does that mean for the turkish economy as well as the lira? >> it's very risky. they have been trying to reassure global investors. they say whatever happens politically, they remain solid. i am skeptical because even before the coup, their policy was going off the rails. it bears close watching. the global environment is much

more negative and it's revealing which countries are not prepared for this sort of difficult environment. shery: does it have broader etf in general? >> i don't think so but markets are very nervous and it hopefully makes investors more leery and discerning. turkey is not south africa or do -- or brazil. you have to look at each country individually. but you cannot just look at em and make generalizations. matt: one country that is gone through fascinating moves is nigeria. hte nira went through 300 for the first time. people who work and import inside nigeria still have to play the black-market rate because they are not allowed to access the bank rates.

massive inflation they are looking at. how does this effect the economy, the 2 million people living there. >> frontier africa was the next big a few years ago. most of that was predicated on 12% anding up to gobbling up oil and copper. china is half of that now. half of the frontier investments are coming under pressure and it's coming at the law -- at the wrong time. the institutions in africa like mozambique and nigeria and angola, these countries are not prepared when the tide goes out. have a longerle track record. i am concerned about nigeria another frontier countries. matt: is no great that they let go of the peg? shery: foreign investors are

pretty spooked when that happens. >> they made a motion to open up the market but global investors are still having trouble accessing dollars. market and the black-market are not aligned still. shery: where do investors find the opportunities? let's talk about the stock market in america. is that despite the recent rally we have had in latin american stocks, we are ratios are there pb pretty cheap compared to the u.s. low after it diversion 2010 cigna do you find opportunity in those markets? >> >> i am bullish >> on american markets near term. the liquidity story is positive.

the bank of england and the ecb and bank of japan and others are easing. where does money chase returns? it goes into high yields and emerging markets. that rateew months, rises off the table. to ther is to close election so people are counting on a december hike. matt: thank you so much for joining us. thanks again for wading through the speech. talk more about the fed and the boj on bloomberg markets. ♪

hery: you are watching "bloomberg ." let's go down to abigail doolittle at the nasdaq. >> after just tepid gains this morning, we are looking at a maze rally for the nasdaq, up half a percentage point. one stock helping the index, the best percentage performer is vodafone. shares are nicely higher after vodafone beat first-quarter services revenue estimates. this is reassuring as the strongest grossed -- the strongest growth situation. they had their last pick in 2014 as vodafone is transitioning from a mobile carrier to an integrated carrier. from boat at verizon, the big may be that verizon close to buying yahoo! for $5 billion, ending an era for the

internet pioneer and ending months of speculation around the sales process. this would put yahoo! together who acquired air well and ceo marissa mayer has come under a lot of pressure the last few months. yahoo! aroundurn but something that may be underappreciated is why she failed -- while she failed to turn around from an earnings perspective, the stock from when she took charge in july of 2012 has more than doubled through up current time period, 150%, outperforming the nasdaq which is only up 78%. yahoo! has really outperformed the broader stock market under the tenure of marissa mayer. shery: thank you so much. going back to yahoo! and verizon, we have piper jaffray senior research analyst gene munster saying that if the deal

becomes official, it would be huge for yahoo!. >> it is a great outcome. it's something that verizon needs to get done quickly and time is of the essence. is beforealue here the election and this is a good outcome and some of the stuff you have been reporting on, the alignment would make a ton of sense. of $5 billion, that comes from our reporting and the original bid was $3.75 billion. was that number a surprise to you? >> we still have it in at just over $6 billion. that number is a little bit lower. comeink it will ultimately out higher so we are at $6 billion. if you look at the tax benefit

for yahoo! japan and alley bubba. baba -- alillie baba. it does not make much of a difference. alix: where does this leave the other bidders like quicken loans and dan gilbert and the other p/e firms? will we see more mergers in the tech space? >> i think so. ad teching in broader has been a big disappointment. those companies have disappointed and the stocks have disappointed but you are starting to see some consolidation. it started with aol a couple of years ago. you could see more of that. ultimately, i look to the company that have been left out. yahoo! is a unique asset and i could see them doing other given that there has been so much carnage over the last two years. yahoo! stock is up by 17% for the year.

rate yourve to re- stock while we wait for the deal to close? >> we feel good where we are at. we have a $40 price tag which is where we are at. is that if important they do this transaction, i valueit increases $15 in on a tax-free basis. we talked about that being upside to the share price. you own this in anticipation that this ends up being a tax-free transaction. shery: that was gene munster at piper jaffray. coming up, we will talk about the fed and the index in a bloomberg that shows a tightening bias. this is bloomberg. ♪

matt: most economists expect the d at on rates but

some say tightening would be appropriate now. the author of that is michael mcdonough. thank you so much and great to have you here. i have been looking at your work for years. i think this is the most interesting indicator you have created. i have it on the screen. how did you put this together? >> i think there is quite a few indicators that say the fed should be tightening but this one is interesting. it is meant to measure, the fed has a tightening bias or in easing bias in the usually state that. the index measures what that bias is and how it changes month to month. we know what the fed look at, the unappointed rate, inflation, the general taylor rule. we took that taylor rule and added in another component which is financial conditions. unemployment could look good and inflation could look good but if

financial conditions are terrible, they will not want to tighten. you combine that and compare it what thelly based on fed says it's bias is, you know where all of these things -- what the bias is. for the first time since 2007, it is indicating the fed has a tightening bias. matt: i think it was last week? >> it's a bit of a lag because corp. pc comes out on a bit of a lag. the reading is for may. we will officially get the june number august two. one of the interesting things when i updated this index, i thought what is the impact of brexit going to be? brexit through the financial conditions panel is probably going to make the index, assuming the pc carries over from the previous month, will probably turn the index slightly negative again in june.

shery: but it could see it rebound? >> it will definitely rebound. if you take the june condition index, it has gone back to positive territory. shery: i have to bring in the balance sheets of the fed and the ecb and the boj. they have risen more than $8 billion combined. we are seeing the fed balance sheet is right up there and it's following closely to the boj on that blue line. when will it surpass that question mark >> very soon, they will probably announce more andng and percent at jus assets. it will probably happen and the interesting thing is in 2018, the fed will probably shrink their balance sheet through slowing down the reinvestment as bonds mature.

it will probably happen soon. side: given the relative -- size of the japanese gdp and the u.s., why is this true? >> if you consider the size of these economies, the balance sheet of the fed is about 25% of the u.s. and in japan, if 80%. the central bank allen she does 80% of gdp and i have not been able to generate 2% inflation. matt: is there a shortcut or michael's musings? you can find it on the bloomberg terminal. this is fascinating stuff. etf's, had, we will talk it's friday, this is bloomberg. ♪

. . [hip hop beat]

♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪

♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. shery: from bloomberg world headquarters in new york, you are watching "bloomberg

markets." time shery ahn. matt: we go to mark crumpton in the newsroom. mark: following reports of a shooting at the olympic stadium, local media says it has left several people dead. services have been suspended. we will have more on this developing story when you get more information. held a jointma white house press conference with mexican president enrique piñon?. piña nieto. obama: this idea that america is somehow on the verge , this vision of violence and chaos everywhere does not really jive with the experience of most people.

mark: the president said he was the republicanch conference. he said, "i have got a job to do." all eyes are focused on virginia senator tim kaine as hillary clinton's likely vp choice. he was in the running in 2008 former president bill clinton also approached senator kaine. cory booker was also seen as contenders. secretary kerry says climate change is as dangerous as threats posed by islamic state and other terror groups. he made the comments in vienna today. about 200 nations are trying to reach a deal regarding the powerful greenhouse gases. wales is joining scotland over

calling for veto power over britain's planned exit from the european union. the semiautonomous legislature parliamentd the u.k. should be able to reject any withdrawal.l on they also say the deal should be approved by all four parliaments. ♪ global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. shery, back to you. shery: mark, thank you. even the most sophisticated investors may be overlooking smart beta details. joining us are dani burger and analyst -- dani,

let me start with you. why are they so popular, and our investors overlooking anything ? dani: you are certainly right. essentially, what these are portfolio,king the etf, something other than cap waited. specific styles that are looking to give you momentum exposure, value, growth. the way that these are set up, portfoliosong-only , so it is difficult to weed out the other factors that could creep in. unless you have -- on bloomberg, there is a great function, and you can look in there and see different exposures. it is a fact of life. no one is saying that the constructors are trying to full anybody, but unless you have a

good analysis to get into the, sometimes you can be unaware of other factors. shery: a follow-up on this -- have these impurities affected deterrence? dani: one of the things you could look at that is held up as an example, a little over 12 months ago, you had low become closelys correlated with utilities. you have utility selloff, therefore the low volatilities more than the s&p. are there really low volatilities anymore? lowball has a high correlation with momentum. this could happen all over again. are supposed to ol investing in low-v stocks and you invest in momentum stocks, utility stocks because they show some of the same indication. what is the problem? as long as they stay low-vol,

isn't that ok? four they actually change from low-vol, and if that is the case, why don't the algorithms understand that? guest: a few things like this. you can grasp the volatility. tlv, equity g-v, and then grab the 100-80 day vol 500, these are consistently exhibiting lower volatility than the s&p. there are occasions, like you said, with the utility selloff, they had a lot of health care, but there was a violent runoff or selloff in a sector for a week or a couple of days, it might match the s&p, but over both exhibit 10%

to 20% lower volatility than the market. i do not think this is a magic potion or anything. i think they do deliver low volatility in the long-term. everyone is, when rushes into them, that is when momentum kind of creeps in, so when everybody rushes into a defensive factor, you will get a little momentum because the herd is buying up the stocks. that is what you see with the low-vol this year. those buying do not care about they are performance chasing because it is a hot area. matt: right, but does that not change it from a low-vol stock? eric: it does. but they rebalance every quarter. have 23 percent utilities in the quarter that it had that issue, then it rebound -- rebounds out of utilities into whatever sector and stocks are doing that are low-vol, so it is only seeking out low-vol every quarterly rebound. investors should know this. that is the point, and a lot of times they are compared to a

perfect scenario. if you compare them to an asset manager, people are like hey, it is five times cheaper, it does what it says it is going to do, and that is what you see them. shery: low-vol etf's have been a gold mine, some safer like rock's -- say for black ishares. more pricing in the middle when you see market environment changing. eric: yep. it is all about what people are biting and what is selling off. selling and runoffs, you will see that. for the most part again, if you grasp the volatility, dividend etf's also deliver because they provide a higher yield. in general, they deliver what they are supposed to. matt: what is the bottom line, dani, dani, as far as smart-beta? do you think it is still the future? dani: it is very popular.

makere seeing companies multifactor smart-bader etf -- smart-beta etf's. investors are learning more about these. it comes down to an issue of transparency at the end of the day. you need to know what you are investing in. studies show that among etf's, if smart-beta you look at the difference in performance, 80% of the variability between different etf's was due to this issue of style. popular, it is very and i still think people are getting more comfortable. there are more tolls out there to see what you are holding, to see what your folio is, so if you use these wisely, you definitely should be aware of what exactly is you are holding. matt: cool. shery: basically for any investment, you should know what you're investing in. [laughter]

dani, thank you so much. eric, thank you so much fear to and eric's dani burger balchunas. up, our mystery stock takes a fall after some write-offs. its long roster of celebrity endorsements may have trouble getting a cap to the airport. this is bloomberg. ♪

>matt: this is "bloomberg markets." i am matt miller. shery: i am shery ahn. matt: i will give you the hint again on our mystery stock -- investors may be checking what is in their wallets today as our

mystery stock takes a fall after some write-offs. it's long roster of celebrity endorsers may have trouble to the airport. so shery and i have been discussing this. there are a few different hence. -- hints. celebrityny has endorsers, took some write-offs, and have trouble getting a cab. julie: guys, what is in your wallet? matt: capital one? shery: not in my wallet. [laughter] julie: they are who we are talking about today. matt: you cannot get a cab to the airport with that, or what is going on? julie: they had to take a write off this quarter as a result of business, and they are focused so that is part of the clue. i do not blame you for getting it. what is in your wallet was the tell of that clue.

the stock over the past year, if you look at how it is doing today, we are indeed seeing a pullback here. credit trends are deteriorating. what is getting the most attention is the provision for loan losses. it is ticking up. take a look at the bloomberg here, i used to the bloomberg intelligence car tool. , which that provision has been going up and up and up. here is the estimated level and the actual level. as you can see for the past -- quarters,s, more for these losses than analysts were predicting. various types of loans here in the portfolio, you have got credit cards, auto loans. we know that area has been troubled. home loans, commercial, and other. we are also seeing an uptick in

these loan-loss provision. matt: i think that is good, you know, because sometimes i get it right away. i like that. it was challenging. it made a lot of sense. julie, thanks very much. shery: it is time now for the bloomberg business flash. leaving foret to be yahoos -- the leading better for web messages. it would not include yahoo!'s patents. talks could still fall apart. spain's second-largest bank could be cutting 2000 jobs or more. people familiar with the matter said it would affect the branches, the central service unit. a lenders have been heard by record low interest rates, regulation, and falling demand for credit. shery: canada's deflation rate

was unchanged in june. consumernment says price index was 1.5% higher in june than a year earlier. right now, medium forecast 1.4%. ♪ and that is your business flash update. matt: let's stay on canada. backcountry's economy forced to underperform according to the imf. consumer price growth in sales data for the month, just released today, suggests a different story. joining us is jamie sturgeon, bloomberg tv's canada anchor. does the show that the imf is a little bit off? julie: -- up 0.9%.tail sales are

that is the fastest pace since the rebound following the great recession in 2009. some fatigue is being experience as the commodity cruncher driving off, and they continue to do so. the mood is pretty optimistic. the labor market is not spectacular, but it has been resilient. a good source of optimism has been the housing. soaring house prices in vancouver and the toronto region are giving a big factor. that is troubling because household debt is already in record territory. the ability to borrow more has been a big factor in keeping things very stable, too. inflation was released today as well with core cpi. this is what the bank of canada looks at closely. it also beat forecasts and leaves canada's inflation rate at the highest among pretty much

all industrialized economies right now. shery: the bank of canada kept the key rate at .5% this year. what does it mean for the rate going forward? jamie: governments are saying that 2.1% is not going to move the needle much one way or the other this year. it will have to be a bigger bump policyat to evoke a change. reflecting the economic reality of slower growth, the forecast for the spring quarter is negative because of the wildfires in alberta. manufacturing is well has been a serial disappointment. outside of those pockets of strength in terms of housing, as strong as they are for now, there is not much in the way for drivers to rely on. most economy watchers expect rates to be on hold for at least another year. there is a meeting for

september. if there is a change, it will more likely be a cut than and move the other way. so much,ie, thanks jamie sturgeon, bloomberg tv canada anchor. breaking news you on the situation in munich. german police say multiple shooters are on the loose, and the police are urging people to avoid public spaces around munich. german media is reporting that there have been too separate shootings in the city, one of them was at a shopping mall in which multiple people were killed, and others were injured or wounded. .he other at a railway station police are saying right now that three people have been killed in total, so that would lead me to believe two in the shopping center and one at the railway station. we continue to monitor this for you, and we will bring you updates. of course, germans are already on high alert after the ax attack on a train earlier this week. this is bloomberg. ♪

shery: this is "bloomberg markets." i am shery ahn. matt: i am matt miller. one of the problems with global trade -- the rich have gotten richer, the poor have seen the wealth rise, but the middle class has seen the wealth compressed. many have deemed to this the elephant chart, for obvious reasons. codirector mark weisbrot explaining what you missed yesterday. world's,the developing the low and middle income not toos, overall,

terrible over the last two decades of the 20th century, so if you look at this period, which is 1988 to 2008, if you take china out of it, most of the world did very badly in the era of what i would call neo- liberal globalization. so it was not just trade or international, it was a whole set of policies that were adopted in dozens of countries. ironically, china was the one that did not adopt. they had a very different development strategy. investments,their the state was responsible for most investments, controlled the banking system, even controlled foreign direct investment so it would not compete. all the things that the reforms, theuding the wto, went into office of direction. so here is this country that did very much everything mostly different from what the rest of the world was doing

during this whole era of globalization, this is the one that grew its income per capita by 13 times in 30 years. no country has ever con close to it in the history of the world. i want to talk about why this is so important because we are in an air of free trade in the u.s. and u.k., but the story that we are told by many advocates of the current model is that yes, it has not perhaps been ideal for the middle classes in the u.s. and in europe, but it has been such a boon for the world that ultimately we have to keep pursuing this and then perhaps do more domestic distribution. your argument is essentially saying it has not really been that great for the world, this globalization, neoliberalism, free trade, and that the one standout story where people got much richer over the last several years, they did not follow the neoliberal script at all. mark: that is right, the last several decades.

it is the has grown, biggest economy in the world. it is bigger than the united states on a purchasing power parity basis. china actually help to the other developing countries. for example, the 2009 world recession, that what have been much worse if it was not for china. china is hit very hard by it. are bigt, because they exporters, they lost 3.4% of gdp exports, yet they still grew 9% that year while the rest of the world not grow and a lot of countries shrink, including the united states. why is that? you could only have so much state control over the country -- the economy. they just shifted investments to the economy, and by doing that, they helped pull a lot of countries up from where they would have been without china, and that is true actually for the whole first decade of the 21st century where you see a

considerable rebound in developing countries, and a lot of that was due to china's really rapid growth. ofry: that was mark weisbrot the center for economic policy and research. watching this today, housing starts, joe weisenthal joins us now. he says the u.s. building more homes than the last year. has that been enough? joe: no. that is the argument going on. we are still under housed. there is not enough to meet the demand for millennials and so forth, multifamily spirit of laurie goodman is next for it of this third we will talk about what are the barriers to more housing. we know there are affordablili ty issues, down payment, labor issues, labor shortages with construction companies, so that will be a very interesting conversation. matt: we had a guest on recently, i think it was an

"bloomberg view" piece, that we should create another housing bubble. joe: not a housing bubble for the purpose of everyone getting rich and speculating but that we need higher prices in order to create the wage growth needed that will bring construction workers back in because as we look at the surveys of home builders, and we will get homebuilder earnings over the coming weeks, they consistently cited for a while that there is a labor shortage. it is creating a backlog. matt: i look forward to it. "what did you miss" at 4:00 with joe weisenthal. we'll be speaking with laurie goodman, as we said, housing, finance, and building. ♪ ?c+sv

matt: it is 11:00 a.m. in san francisco. i am david gura. vonnie: and i'm vonnie quinn.

welcome to "bloomberg markets." ♪ david: we are live from bloomberg world headquarters in new york. here is what we are -- the s&p 500 has gone back for its fourth weekly gain. what about the bond market? treasuries could snap back from the record-setting rallies. vonnie: a bloomberg news scoop -- an announcement should be coming in the next few days over the acquiring of yahoo! david: and eight $2 billion second-quarter loss. we are covering the results in today's commodity close. vonnie: markets close in two hours. bloomberg said julie hyman been keeping an eye on markets all day. julie: i have. we have